Amazon.com Opens Promotional Space for Bidding

Share this article:
Discarding flat fees for promotional placements, Amazon.com wants sellers to bid for prime space on its auctions and zShops Web pages, according to a company announcement this week.


For a minimum daily participation fee of 5 cents per level, sellers can bid for the Amazon Auctions home page or other categories.


Called Bid for Featured Placement, this feature is designed as a flexible merchandising tool. Sellers can raise their bids at any time by any amount to occupy the most valuable real estate on Amazon's pages.


"[This] is a way to continue to offer our sellers a set of promotional tools and help them sell more merchandise, attract more bids, achieve higher prices and essentially help them reach our customers," said Jeff Blackburn, general manager at Amazon Auctions.


This new ploy arguably is an incentive to lure sellers away from listing on Amazon rivals eBay and Yahoo Auctions. The three control almost 95 percent of all online auctions, according to industry estimates.


EBay is said to account for 75 percent to 88 percent of online auctions. Amazon, so far the leader in books, wants to boost its credibility with sellers through the new fee structure for promotional placements.


Previously, it cost $99.95 to feature an item on the Amazon Auctions home page and $14.95 for the category page.


As an incentive under the new scheme, the higher the seller's bid, the higher the placement appears in the category listings, on the auctions home page and in search results. In addition, when sellers use Bid for Featured Placement, Amazon will highlight their listing with a "Featured" icon.


Blackburn is confident that this new form of bidding for merchandising space won't clog the pertinent Amazon pages.


"It won't clutter pages, and we won't run out of room," he said. "In fact, it reduces clutter because it helps people identify featured items."
Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

DMA 2014 Kicks Off Under New Management

DMA 2014 Kicks Off Under New Management

Thomas Benton and Jane Berzan will preside over an event indicative of an association serving a wider array of industry segments.

De Quinto Tapped as Coke's Next CMO

De Quinto Tapped as Coke's Next CMO

The president of the company's Iberia Business Unit will take over from Joe Tripodi upon his retirement in February.

Customer Centricity Is Spurring Marketing-Tech Investments

Customer Centricity Is Spurring Marketing-Tech Investments

A majority of marketers rank customer satisfaction improvements as paramount in the technology investment decisions.